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BREAKING NEWS! Step-by-Step Guidance for Small Business Contractors // Small Business Loan

Apr 012020

Your partners at Constructors Bonding, Inc. would like to share some information regarding the NEW Small Business Administration loan program know as the Paycheck Protection Program. 

As a reminder, last week Congress approved a $2 Trillion legislative package (CARES Act) that included provisions to allocate $350 billion for federally-backed loans to support U.S. companies with less the 500 employees. The Paycheck Protection Program, included as part of the legislative stimulus signed into law last week, is separate from the SBA program’s Economic Injury Disaster Loans (EIDL), which has been available for companies experiencing financial hardship as a result of COVID-19 since early March.

Step-by-Step Guidance

The U.S. Chamber of Commerce has created a thorough walkthrough to help U.S. businesses determine if they are eligible to receive a small business loan, linked here, and also included in the bottom of this email. Importantly, this step-by-step guidance provides:

1. Who is eligible for these loans
2. What lenders will be looking for in the application process
3. How much companies are allowed to borrow
4. How to seek loan forgiveness

Companies still interested in applying for the disaster relief loans (EIDL) can find further resources here; however, SBA guidance is directing potential new applicants to the PPP loan portal. Additionally, we included some frequently asked questions and answers below to address some of the top concerns small business owners have raised as they navigate the options available to them through the SBA loan programs. For real time updates from the Chamber of Commerce, including additional information on which lenders are participating in the program, please click here. If your small business contractor clients need real time help with a representative of the SBA, please click here to find the closest SBA district office.

Brief FAQ for Small Business Entities Interested in Taking Next Steps to Apply for a Loan:

Q. Where can I apply for the Paycheck Protection Program?
A. You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA's lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA's online Lender Match tool.

Q. If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to the COVID-19 virus before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?
A. Yes. If you received an EIDL loan related to the virus between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.

Q. I am an independent contractor or gig economy worker, am I eligible?
A. Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.

Q. When is the application deadline for the Paycheck Protection Program?
A. Applicants are eligible to apply for the PPP loan until June 30th, 2020.

Q. What is the maximum amount I can borrow?
A. The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations. This 8 week period may be applied to any time frame between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses.

Q. How can I use the money such that the loan will be forgiven and when is the loan forgiven?
A. The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like to use the Paycheck Protection Program for other business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven. The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020. If the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender.

Q. What is the covered period of the loan?
A. The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.

Q. When can we expect further guidance from the SBA on this new program?
A. The SBA has until April 10, 2020 to issue regulations implementing this new program. That rule making will not be subject to typical public notice and comment processes.The SBA also has until April 26, 2020 to issue specific guidance on loan payment deferment relief and the loan forgiveness provisions.

Email Chrystal@cbialliance.com for the application!  

Constructors Bonding is here to help you! Call to speak to one of our experienced surety professionals today! 


Constructors Bonding Message Regarding COVID-19

Mar 172020

"Thank you for trusting Constructors Bonding, Inc. for your surety needs!

We are all well aware of the massive changes in life arising daily due to the pandemic of Covid-19. While many of us have differing opinions about the dangers presented by the virus we all must consider the impact of the virus on our operations. As your trusted surety partner, there are several things we wish to convey that may support your continued success:

We recommend that, if your contracts do not contain force majeure clauses, that they ALL have these added to any new work before signing contracts. A force majeure clause addresses “unforeseeable circumstances that prevent someone from fulfilling a contract.” Such unforeseeable circumstances may include governmental shut down of large projects with many laborers on site, for example. Otherwise, an Owner may hold you accountable for timely completion even if the City of Los Angeles sends inspectors home for a month and you can not proceed with your work effectively.

Please consider the implications of supply chain interruption. A project securing granite counter tops from China may be drastically delayed at the mine, the factory, the Chinese port, or by US Customs. Reserving rights to be granted automatic extensions of time for supply chain interruptions will be the best way to avoid disputes and/or litigation down the road. Even if your materials are domestic in origin, remember the shut down of imports will place higher demand on domestic products and compromise delivery times. Surely price increases follow.

Many surety companies have suspended travel of their staff. Some have sent their staff to work from home. Some sureties are equipped for this and others… not so much. Keep in mind that it may be slower in getting bonds approved than it has been in the past.

This is affecting every industry and since we service all types of companies, we are here to help with anything that we can in order to assist our clients in their continued success. 

 Constructors Bonding is proactively addressing issues like these by securing lines of authority to attend to your bond needs internally as an accommodation to this present situation. So, when you pull plans, send in that bid request right away and let us do the diligence needed to be ready; even if you may decide not to bid. We are glad to go to the extra effort to insure your success! Additionally, please take an extra care in updating your file with 12/31/19 data promptly. Everything will go faster with an updated file; especially when your competition has no plan"

You trust us to have a plan and we do. THANK YOU for that trust!

Congratulations to Constructors Bonding, Inc!

Feb 182020

Constructor's Bonding, Inc., the largest surety agency in the Southwest was just recognized as a Masters Agent among Merchants Bonding Company's 2020 Leaderboard Surety Elite! 

Constructors Bonding, understands the importance of strong surety relationships in order to maximize their clients bonding programs. Being among the elite with an elite surety company is something to be proud of. 

CBI would like to recognize all the partners: Dave McKee, Joe Clarken, Pat Hedges, Ted Rarrick, and Chrystal Hedges for all their handwork in 2019 and going forward! 



For the best surety managers out there contact Constructor Bonding today! 



Constructors Bonding-Investing in the Future!

Oct 282019

Build Your Future Arizona (BYFAZ) is an exciting campaign Constructors Bonding has invested in in hopes to improve the current labor shortages in the construction industry. CBI is an advocate for the construction industry, and is looking forward to being apart of such a strong campaign. Contractors in the Valley playing a big role are;  DP Electric, SSC Underground, Brewer Companies, Sundt, McCarthy, just to name a few. From this impressive line up, this campaign has an excellent success potential right from the start. 

At the official Launch, the mayor of Phoenix, Kate Gallego spoke, and she too is excited and committed to this campaign. 

 "Build Your Future aims to be the catalyst for recruiting the next generation of craft professionals. We provide a collaborative grassroots approach to construction workforce forecasting and development that includes recruitment, training, placement, retention and image enhancement strategies." 



If you have questions on how to be involved please contact someone at Constructors Bonding today! 



A Day of Remembrance......

Sep 112019

18 years ago our country was attacked. Innocent lives were lost. So today, we

remember those lives that we lost, the rescue teams that saved lives, or died trying

to, and the loved ones affected by this tragedy. 


Constructors Bonding Inc. wanted to acknowledge today and all that was affected.

You are all in our thoughts. 






Constructors Bonding Partner Spotlight

Jul 182019

Last on the Partner Spotlight tour, but certainly not least, their newest addition, Ted H. Rarrick. Ted has a wealth of knowledge in the construction industry and CBI is proud and grateful to have him. With his dedication to the process, his clients, and really anyone he meets, he is someone you want to know. 

Meet Ted H. Rarrick. 


Ted H. Rarrick, Managing Director of Client Relations

Ted Rarrick, CBI’s Managing Director of Client Relations is responsible for assuring the procedures and systems of CBI exceed the expectations of our clients as well as monitoring the performance of the bond companies we utilize. Our mission to excel in all we do relies on Ted’s 30 years’ experience in surety to be the most innovative, proactive, and value-added surety partner our clients deserve. Ted interfaces with the CBI team to ensure the surety companies we use are performing to the standards we expect and represent to our clients who place the highest trust in CBI.

Ted graduated from University of Arizona with a degree in Marketing. He began his surety career in 1989 with Zurich, later serving as bond manager and running the Arizona office. In 1999 he founded Construction Risk Partners, Inc., a bond-only agency delivering exceptional surety management to clients. Ted is a past President of the Surety Association of Arizona. Ted joining the team in 2019 further distinguishes CBI as the premier Surety Management firm in Arizona. Ted and his wife have three children.

If you are a prospective client in need of the finest surety program available anywhere or an existing CBI client with suggestions as to how we can better exceed your needs, reach out to Ted at Ted@cbialliance.com.

 Constructors Bonding, Inc.
You Deserve Excellence. We Require It.